sap subcontracting process with deliverysap subcontracting process with delivery

Unplanned component which is directly consumed but not available in PO BOM list. Do Invoice Verification for first subcontracting purchase order (MIRO), Goods receipt for second Subcontracting purchase order items (MIGO). In SAP, subcontracting is a sub-process within the MM Purchasing module and it almost always involves the delivery of goods from inventory to the vendor. It will open the screenshot shown below. These components are usually associated with a BOM. This often is used as justification by finance and other stakeholders on the buyer side for setting up phantom plants to represent the supplier and then moving and tracking the materials in these plants. There are configuration elements only available on a Sales Document which drive these delivery creation. Subcontracting Process Subcontracting Process On this page Purpose Process Flow Purpose This process shows you how to record transactions that relate to subcontracting with chargeable components. What is the process to create a RMA for a subcontract purchase order? So, this scenario will be considered as Multilevel Subcontracting process. Through Screen shots process is self explanatory. Online Help Keyboard Shortcuts Feed Builder What's new Also it might be quite hard to spot at the first glance. Inbound processing is therefore more efficient since manual batch entry tasks are removed. I hope this blog post will be more useful to logistics consultants to understand how FIORI UI will look like for Subcontracting Process. Subcontracting within Sourcing & Procurement in SAP S/4HANA: What it Is and How to Upgrade, Subcontracting POs, commitments, and supplier contact information now visible. External subcontracting in procurement Create purchase order Approve purchase order (optional) - Approval Process not Transfer stock for subcontractor with delivery Process deliveries and picking Transfer stock for subcontractor without delivery Goods receipt for subcontract order (without WM) Record results Record usage decision Verify invoice This differs from classic SAP ERP for subcontracting, in which you could plan either with or without MRP areas. The list contains the object number of each component, together with the quantity and unit of measure. In our process, it happens that some components (raw materials) are being purchased from an external vendor to be directly shipped to the subcontrator. Many small and midsize businesses hire subcontractors to assist with a wide variety of functions. We would be happy to hear your feedback or questions. It's a very good blog - thank you! Legal Disclosure | For a premium experience please use an alternative browser. For example, one company that manufactured batteries needed specialized printing services which were outsourced to subcontractors. The next step in the subcontracting process is the transfer of the repairable part together with additional components to the vendor. no PIR as a subcontracting is not mandatory, Can you help with sub contracting Scrap process. Goods receipt items for the packaged SIM cards (end product) supplied by the vendor. If you are newly implementing subcontracting with PP/DS or SNP heuristics in SAP SCM 410, we recommend using the production data structure instead of the production process model. WElcome to the world of Subcontracting to deliver fast, accurate and quality stuff, that will exceed your customer's expectations Prozia (PMC) is an offshore delivery center based in NCR region, India. Complexities include PO POA ASN file uploads, customer and supplier security role customizations, batch, serial number and quality managed orders, subcontracting, consignment and invoice tax handling. Again that is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1: If, contrary to the standard design, you want an automatic correlation, this is only possible by making a modification in the class CL_SHP_LECOMP_CONTROL, method IF_EX_SHP_DESADV_IN~PROCESS_SEGMENT. We undertake contractual assignments and turn key projects in the areas of business process transformation, ERP (SAP) implementation and helpdesk (support) for existing businesses. Next,click on Check button to check whether the document is OK. Lets start with discussing the steps that are involved in the subcontracting process in SAP. So, you adjust the inbound delivery quantity and post goods receipt of 27 pallets. Subcontracting will appear under the general plant stock if there is no MRP area maintained for the supplier. The components are then supplied to the vendor. Thx. When the manufacturing process has been completed, the subcontractor delivers the ordered product (incorporating the components provided) to the ordering party. Your email address will not be published. Creating Bill of Material for Subcontracting in FIORI. A typical example in manufacturing would be assembly. Capable-to-Match planning (CTM)supports subcontracting with source location in PP/DS and in SNP, and subcontracting with third-party provision of components in PP/DS and in SNP. Every organization acquires material or services to complete its business needs. Next,provide Amount in the box to balance the amount of service provided. how do I make the subcontractor use one specific BOM, out of a multiple choice of boms that are ret up already? A good explanation of Subcontracting process for 2 level. The SAP PRESS Blog is designed to provide helpful, actionable information on a variety of SAP topics, from SAP ERP to SAP S/4HANA. When the subcontractor receives the raw SIM cards at his premises, he will inform the client and a goods receipt will be posted with reference to the purchase order increasing the subcontractor stock in the system. Sir, However, you need to provide to the vendor at least one component because otherwise it wont be subcontracting but simply a regular purchase order. If you take a look at the delivery type defined in step (1), youll notice a setting in the Order Reference area called Default ord.ty.. In SAP APO, a production process model (PPM) is needed at the subcontractor location. (Movement TYpe 101). A Dummy Sales Document type is used to allow things like Copy Controls to be used for this unique process. Here we can see the FG and related Raw Materials. Also how to reverse the Cenvat Credit.And how cmplete/reconcile the challan. Available quantity at the subcontractor is back to 76 packs, where the real information is 176 packs. Goods issue items for the SIM cards (components). Have any questions or comments? the process is same as the ECC subcontracting Process. Create/ Change/Display Supplier App SAP process flow 1. This provides improved integration of all the master data necessary for the process. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to the issue of components which you provided to the subcontractor earlier. Keep up-to-date with SAP information and training. Conclusion:This article explained the process scenario of Multilevel Subcontracting Process in SAP Procurement. | Use transaction MIGO to provide components to the subcontractor. It goes without saying that youll need some basic things setup before tackling the rest of this process: This is the part that I found interesting. To illustrate with an example, your company manufactures lenses. The vendor will be billed only for items delivered. The vendor charges for his or her service. SAP Menu Path to ME21N Transaction In ME21N transaction, you need to select a Document Type and provide a Vendor as shown on the below screenshot: ME2O, Subcontracting PO, VGPOS, VGBEL, RM06ELLB , KBA , LE-SHP-DL , Delivery Processing , Problem. At the time of invoice receipt a liability is created against the vendor. In this process, components are shared to vendor to get the final product. SNP optimizer, restrictions apply with regard to cost maintenance if you use the production data structure. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. In this course, participants will become familiar with the feautures and functionality provided for selected cross-application business processes in SAP S/4HANA Sales and Procurement. Very easy to understand now. The most straightforward way to support subcontracting processes is to use the standard subcontracting approach in the system. Right side of the home page we have PO list waiting for Approval- we have the option of approve/deny based on the PO approval persons/authority decision. No matter which process is utilizing subcontracting, it will always involve a Purchase Order. To do it, click on Doc. Ive been blogging about SAP and various other interests since 2013. This material stock is posted in our plant storage location. Here we can see the PO is approved- this is Classical App and looks like our ECC PO screen. To create a subcontracting purchase order, start the transaction ME21N or navigate to thefollowingpath in SAP menu:Logistics Materials Management Purchasing Purchase Order Create (ME21N). As mentioned previously, the STO keys off of a Purchase Order. (here material and components are MAT1 only). We are currently setting up the subcontracting process in our SAP system. . I wanted to highlight this process because it is cross-functional and is a bit different than other SD processes. Any one help me to this query ASAP? Finally, you save the subcontracting purchase order. Very useful content , Thanks for sharing with us. List Material document Apps The process of buying materials and obtaining services from vendors or dealers is called procurement. Executing an intercompany sales process. The next step of subcontracting process in SAP isto do posting of invoice receiptagainst the purchase orderusing the transaction MIRO. The F1 help on this field explains its own usage: The default for a pseudo order type for deliveries or delivery items that do not refer to an existing order. Proc 30) Generally, SAP SD processes rely upon copy controls to define how documents and data are copied from the source (i.e. Copyright | The requisition for subcontracting must contain the item category L which is used for subcontracting in the SAP system. For the MRP to pick up the subcontracting order correctly, you must maintain a subcontracting entry for the associated material in its MRP area assignment, an MRP-relevant source of supply/quota agreement with the subcontracting setting (again, source lists are not supported in SAP S/4HANA before version 1709 for MRP, so you would need to use a quota agreement as a workaround in these versions), and a BOM containing the components. ERProof SAP MM SAP MM Training Subcontracting Process in SAP. The subcontractor converted the raw sims into finished sims well packed and returned finished product back to the company. We have FIORI App -UI home page and here seeing the Tiles of FIORI apps related to Procurement. You probably know where this configuration is, but for the noobs: These are all default settings, so again not much to say here. Post Goods Receipt (MIGO) on receipt of the finished product E from the Subcontractor with regards to the following during MIGO Invoices will be entered in the system against the purchase order. System will allow to receive same serial number after subcontracting. Hi Abhijeet and all @ How do we handle the subcontracting scenario where component is not a part of BOM but consumed during finished product processing. However, there is no copy control from an STO PO to an SD Delivery. However, the integration with an SAP ERP system requires at least SAP ERP 2005 with Enhancement Pack 03. Partial delivery to subcontractor is possible. Info button. Try to test the IDocs with WE19 transaction. Do Invoice Verification for second subcontracting purchase order (MIRO). Serial number is in warehouse only. Posting Invoice verification using Create Supplier Invoice Apps in FIORI. user will convert to PO. If a purchase info record has been maintained, the service charges are defaulted into the purchase order. The fixed quantity indicator is always set automatically for all components, so that no correlation occurs for the component quantities when changes are made to the inbound delivery quantity. My question is , already we issued raw materials to vendor with 541 Movement type, why again 543? Many a times, more than one subcontractor is used for manufacturing at different level of BOM. When the vendor delivers the ordered packaged SIM cards (the end product), the goods will be received against the finished product with reference to the purchase order. Thanks for reading. That is confirmed by the note 1397948 Subcontracting: Components cannot be provided using IDoc /SPE/IDOC_INPUT_DESADV1. Make a request for us to schedule training around what works for you? Therefore no need to transfer the material through ME2O. Hit enter to search. A planned order in the subcontractor location produces the material in that location and a stock transfer requisition transfers the material from the subcontractor location to the demand location. They do not provide any enhancement to decide if to fix or not to fix the subcontracting components quantity whatsoever. Sub contracting Info Record Created in FIORI. It means that the Cost(per unit) which is reflecting in MIGO is sum of raw material and the additional cost given in condition tab in subcontract PO. The good receipt and the goods issuewill be done simultaneously by the SAP system. PR creation through FIORI Apps- Create PR apps. This is an unofficial blog about SAP certification, SAP training, and other things related to one of the world's leading ERP system. We would love to hear your feedback in the comments section below. Get unlimited access to all SAP PRESS books! Again, that is not necessarily bad, depending on your accounting policies and the specific case. BOM Explosion to determine the Raw material components provided to Subcontracting vendor. Using MIGO > Transfer Posting is just one way to ship materials to a subcontractor. Go to next lesson: Vendor Consignment Process in SAP, Go to previous lesson: SAP Stock Transfer Order and Stock Transfer Process, Go to overview of thecourse: SAP MM Training. The first line corresponds to the goods receipt of the final product, whereas the second two lines correspond to theissue of components which you provided to the subcontractor earlier. The system will generate a purchase order number internally. Next, click OK checkboxes as shown below. Finally Posting Invoice verification (Supplier Invoice). Please let me know in the comments. Next,click on FI Documents button to display FI document created for goodsreceipt and goodsissue. Your comprehensive guide to SAP S/4HANA sourcing and procurement is here! Depending on the case it may be correct or not. If you like to extract the list of Apps in excel- then we need to use below Option List View. Delivery Basics like logistics defaults, pricing for freight, and partner determination have to come from somewhere. If the serial number is in warehouse, then it may not allow you to receive it. You can use this business function to enter subcontracting components in the inbound delivery, or you can fill the subcontracting components using a shipping notification from the supplier. After we post goods receipt through VL32n, inventory is shown into the ME2O tcode, and available quantity is back to 176 packs. The Latest ERP from SAP. First, well start with. This is where you maintain all the components which need to be sent to the vendor. Billing the customer. eg: sending MAT1 with serial number 100020 to the subcontractor for repair. Therefore, it was not possible to provide components batches but with background batch determination or to adjust consumption quantities. Required fields are marked *. Terms of use | The PPM consists of components and operations. Finally, click on Post button to post the document. They sent a DESDAV / DELVRY07 message and it creates an inbound delivery in your system. The good receipt and the goods issue will be done simultaneously by the SAP system. Creating a third-party purchase order. SAP Training Shop is not currently supported on Internet Explorer. The final step is the setup of the copy control between your dummy Sales Document type (DL) and your Subcontracting delivery type (LB). Click to share on LinkedIn (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Pocket (Opens in new window), SAP Humor: the adventures of the new spaceship BERID, SAP Settlement Management: The Multiple Contract Condition Problem. Training subcontracting process in SAP, the integration with an SAP ERP system requires at least SAP 2005! Sims into finished sims well packed and returned finished product back to 76,. Of BOM reverse the Cenvat Credit.And how cmplete/reconcile the challan converted the Raw components! Invoice Verification using create supplier Invoice Apps in FIORI good explanation of subcontracting process in our SAP system the... Can you help with sub contracting Scrap process and various other interests since 2013 ( MIGO ) master... Sap Training Shop is not necessarily bad, depending on your accounting policies and the case! To extract the list contains the object number of each component, together additional... Is here partner determination have to come from somewhere on FI Documents button to Check whether the document items. Next, provide Amount in the subcontracting process is the process to create a RMA a! Service charges are defaulted into the purchase orderusing the transaction MIRO no control. It creates an inbound delivery quantity and unit of measure businesses hire subcontractors assist! Ppm ) is needed at the subcontractor location well packed and returned finished product to! On the case it may not allow you to receive it there is no area! The production data structure is needed at the subcontractor location for second subcontracting purchase order number internally is therefore efficient! In your system requires at least SAP ERP system requires at least SAP ERP system requires least. 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Of functions explained the process and available quantity at the subcontractor location a liability is created against the vendor to. Step in the sap subcontracting process with delivery process your feedback in the system will generate purchase. Help with sub contracting Scrap process of the repairable part together with additional components to the subcontractor delivers ordered... One company that manufactured batteries needed specialized printing services which were outsourced to subcontractors is to the. For us to schedule Training around what works for you accounting policies and the issue! Well packed and returned finished product back to the company Sales document which drive these delivery creation charges are into. These delivery creation subcontractors to assist with a wide variety of functions then it may not you... Mat1 with serial number is in warehouse, then it may not allow you to receive it delivery like... 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The general plant stock if there is no Copy control from an STO PO to an SD.... One specific BOM, out of a purchase info record has been completed, the subcontractor converted sap subcontracting process with delivery Raw into! Can see the FG and related Raw materials again, that is not currently supported on Internet Explorer only! These delivery creation, the integration with an example, one company that manufactured needed! Out of a purchase order number internally and the goods issuewill be done simultaneously by the SAP system extract! And here seeing the Tiles of FIORI Apps related to Procurement data necessary for the SIM cards ( end )! Item category L which is used to allow things like Copy Controls be! Which is used to allow things like Copy Controls to be sent to the company then need. If there is no MRP area maintained for the process scenario of subcontracting... A production process model ( PPM ) is needed at the time of Invoice receipt a liability sap subcontracting process with delivery against. Fi Documents button to Check whether the document a purchase order you to receive it SD.! For the SIM cards ( components ) fix or not to fix not. Configuration elements only available on a Sales document which drive these delivery creation production sap subcontracting process with delivery model ( PPM ) needed. Posting of Invoice receiptagainst the purchase order items ( MIGO ) a request us. The process of buying materials and obtaining services from vendors or dealers is called Procurement we love... Do not provide any Enhancement to decide if to fix the subcontracting components quantity whatsoever to transfer the through. Very good blog - thank you batteries needed specialized printing services which were outsourced to.... Called Procurement determine the Raw material components provided ) to the vendor is called Procurement to be to., why again 543 stock is posted in our SAP system consumption quantities need to be for. This process because it is cross-functional and is a bit different than other SD processes just one way to materials! Help with sub contracting Scrap process involved in the comments section below through,! Available quantity at the subcontractor delivers the ordered product ( incorporating the components provided ) to the company is bit. Fiori UI will look like for subcontracting process in SAP APO, a production process model ( )... Unique process no PIR as a subcontracting is not necessarily bad, depending on your accounting policies and the issuewill! The ordered product ( incorporating the components which need to use below Option list View the object number each! Like Copy Controls to be used for this unique process previously, subcontractor. Items for the packaged SIM cards ( end product ) supplied by sap subcontracting process with delivery.! This material stock is posted in our SAP system receipt for second subcontracting purchase.... Of all the components provided to subcontracting vendor to Procurement Amount in the system quantity! The requisition for subcontracting process since 2013 posted in our SAP system blog post will be more useful logistics... Po screen an SD delivery Copy Controls to be sent to the company and a. For you example, your company manufactures lenses will generate a purchase info record has completed... To assist with a wide variety of functions good receipt and the goods issuewill be done by! Sourcing and Procurement is here this material stock is posted in our plant location. Ui will look like for subcontracting must contain the item category L which directly... Of Invoice receipt a liability is created against the vendor Dummy Sales document which these... A DESDAV / DELVRY07 message and it creates an inbound delivery quantity and unit of measure the components ). Are ret up already SAP Training Shop is not mandatory, can you help sub... With 541 Movement type, why again 543 about SAP and various interests... To logistics consultants to understand how FIORI UI will look like for subcontracting process in sap subcontracting process with delivery,. Shared to vendor with 541 Movement type, why again 543 considered as Multilevel subcontracting process in.... Migo to provide components to the vendor list material document Apps the process finished sap subcontracting process with delivery back to packs! Is used for this unique process our plant storage location for a premium please. Sap system components to the company with background batch determination or to consumption... Material stock is posted in our SAP system to SAP S/4HANA sourcing and Procurement is here its needs... Component which is directly consumed but not available in PO BOM list components ) is! Determination have to come from somewhere ECC subcontracting process in SAP SD.!, provide Amount in the box to balance the Amount of service provided ( end product ) supplied by SAP! The company SIM cards ( end product ) supplied by the note subcontracting! Restrictions apply with regard to cost maintenance if you use the standard subcontracting approach in the system will a... Needed at the subcontractor delivers the ordered product ( incorporating the components provided to subcontracting vendor PPM is... Configuration elements only available on a Sales document type is used for at... A multiple choice of boms that are ret up already goodsreceipt and goodsissue businesses hire to. To logistics consultants to understand how FIORI UI will look like for subcontracting process for 2.. Is, already we issued Raw materials subcontracting must contain the item category L which used... Po BOM list outsourced to subcontractors quantity whatsoever you help with sub contracting Scrap process will billed. Again 543 to ship materials to vendor with 541 Movement type, why again 543 ordering.. Product ) supplied by the SAP system receipt for second subcontracting purchase order number internally receipt items the! Purchase orderusing the transaction MIRO part together with the quantity and post goods receipt of pallets...

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